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HPT or VTR: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Hospitality Properites or Ventas (VTR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Hospitality Properites is sporting a Zacks Rank of #2 (Buy), while Ventas has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HPT likely has seen a stronger improvement to its earnings outlook than VTR has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HPT currently has a forward P/E ratio of 5.86, while VTR has a forward P/E of 14.86. We also note that HPT has a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VTR currently has a PEG ratio of 4.47.
Another notable valuation metric for HPT is its P/B ratio of 1.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VTR has a P/B of 2.04.
These are just a few of the metrics contributing to HPT's Value grade of A and VTR's Value grade of D.
HPT has seen stronger estimate revision activity and sports more attractive valuation metrics than VTR, so it seems like value investors will conclude that HPT is the superior option right now.
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HPT or VTR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Hospitality Properites or Ventas (VTR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Hospitality Properites is sporting a Zacks Rank of #2 (Buy), while Ventas has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HPT likely has seen a stronger improvement to its earnings outlook than VTR has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HPT currently has a forward P/E ratio of 5.86, while VTR has a forward P/E of 14.86. We also note that HPT has a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VTR currently has a PEG ratio of 4.47.
Another notable valuation metric for HPT is its P/B ratio of 1.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VTR has a P/B of 2.04.
These are just a few of the metrics contributing to HPT's Value grade of A and VTR's Value grade of D.
HPT has seen stronger estimate revision activity and sports more attractive valuation metrics than VTR, so it seems like value investors will conclude that HPT is the superior option right now.